The Wall Street Journal, on Monday November 24, 2008 (click here for full story), reports that Citigroup Inc and the Government have agreed on the details of the bailout.
Treasury has agreed to inject an additional $20 billion in capital into Citigroup under terms of the deal hashed out between the bank, the Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corp. Treasury officials will charge a higher interest rate for the capital injection — 8% for the first few years — than it has charged to dozens of other banks now borrowing money under the government’s the $700 billion rescue package approved by Congress last month.
This will likely hit Asia like a ton of bricks on Monday morning. The Hang Seng at 12:11 AM ET has fallen 1.19 percent. The Shanghai Composite is down 1.61%. But, the news may settle it.
Reuters reports from Hong Kong also on November 24, that (click here for full story):
Asian share markets fell around 1 percent on Monday, with bank stocks leading the drop, and so-called safe-haven assets like the yen gained as investors cautiously eyed potential U.S. measures to prop up Citigroup.
Further Reuters reported that:
Banks in the region were among the hardest hit on Monday, including Hong Kong-listed shares of HSBC (0005.HK: Quote, Profile, Research, Stock Buzz), South Korea’s KB Financial Group (105560.KS: Quote, Profile, Research, Stock Buzz) and Commonwealth Bank of Australia (CBA.AX: Quote, Profile, Research, Stock Buzz).
Monday in Asia has started with a bit of a rollercoaster now let’s see if the US Treasury Secretary, the Fed, the FDIC and the bailout package can calm the storm before it hits Wall Street the way the Citigroup news hit the Asian Markets.
The Lee’s Summit Conservative